{"url_path":"/sec/grce/10-k/2026/item-3","section_key":"item-3","section_title":"Item 3 **   **Legal","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-06-18","source_url":"https://www.sec.gov/Archives/edgar/data/1444192/0001140361-26-025662-index.html","accession_number":"0001140361-26-025662","cik":"0001444192","ticker":"GRCE","issuer_name":"Grace Therapeutics, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1444192/0001140361-26-025662-index.html","primary_entity_key":"0001444192","primary_entity_name":"Grace Therapeutics, Inc."},"word_count":182,"has_tables":true,"body_markdown":"**Item 3.**   **Legal\nProceedings**\n\n \n\nIn\nthe ordinary course of business, we are at times subject to various legal\nproceedings and disputes. We assess our liabilities and contingencies in\nconnection with outstanding legal proceedings utilizing the latest information\navailable. Where it is probable that we will incur a loss and the amount of the\nloss can be reasonably estimated, we record a liability in our consolidated\nfinancial statements. These legal contingencies may be adjusted to reflect any\nrelevant developments on a quarterly basis. Where a loss is not probable or the\namount of loss is not estimable, we do not accrue legal contingencies. While\nthe outcome of legal proceedings is inherently uncertain, based on information\ncurrently available and available insurance coverage, our management believes\nthat it has established appropriate legal reserves. However, it is possible\nthat the ultimate resolution of these matters, if unfavorable, may be material\nto our financial position, results of operations, or cash flows. We are not\ncurrently a party to any legal proceedings that, in the opinion of management,\nare likely to have a material effect on our business."}